It’s hard to make due nowadays, especially if you’re a single parent with only one income and a growing child. It’s even worse if you have more than one child because you’re paying the bills and paying for more than one child. Sometimes a loan sounds appealing during these times and why not?
It lends you money when you most need it so you can catch up the bills and keep your kids happy and fed. While loans do have their pros, they also have their cons and before you get a loan, let’s explore the pros and cons of a loan. This is a good way for you to look at the big picture and really think about whether this is something you really want to do.
Pros of a Personal Loan
Personal loans can be used for multiple uses whether it’s one specific bill, multiple bills, medical expenses, or it’s something else. If get into some money troubles, a personal loan can be used for whatever trouble it is.
The majority of the time, you’re not required to bring too many documents with you and this appeals to people. These kind of things can make some people confused and with others, they simply cannot get the right documentation for whatever reason.
Your personal assets are safe with personal loans. Unlike a pawn, a home loan, or a car loan, your personal assets such as these things won’t be taken from you if you can’t pay it back. It’s almost a relief in that sense, isn’t it?
You get the loan fairly quickly and this is good for emergencies. With personal loans, it doesn’t take you long to receive personal loans at all and if you’re in need of quick money, this can be a very good thing for you.
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Cons of a Personal Loan
Despite how appealing loans might seem, they have high interest rates. This is how these companies make their money sometimes, so this is something to consider when getting a loan. You will be paying the loan back, plus interest.
Rarely do these loan companies allow you to pay in payments. When you pay the loan back, you must pay the loan back in full the majority of the time so this is something else to keep in mind.
A lot of loan companies like your credit score rating to be good. While they are getting a little flexible, the majority will reject someone with bad credit. This is because personal loans are risky anyway so lenders as hesitant to lend to anyone with lower than average credit.
Now if you happened to be someone with lower credit and you found a company to offer you loan, chances are your interest rates were raised. This is because they’re likely hesitant anyway and as mentioned before, personal loans are risk and to lend to what they consider a risky borrower, they’re going to be more strict with you and raise everything up on you.
Whether you should get a loan or not all depends on your situation, whether you have assets, and whether you can pay it back. You need to certainly think about it long and hard before you make any rash decisions because while a loan can’t take assets, it can’t worsen your credit score if you fail to pay it and they can take you to court. While Tucson courts have gotten more lenient toward borrowers depending on the situation if they agree to pay something, it still is another stress to go through. So it’s definitely something you want to really think about before you do it.
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